Bronze Lifetime
- Messages
- 5,834
- Reactions
- 2,176
Lawyers should not give advice outside of the scope of their practice.
http://www.irs.gov/pub/irs-pdf/f1041es.pdf
Income distributions (money you get in your hands) from trusts are taxed at the beneficiaries rates. The tax rates on trust (held in the trust) income ranges from 15-35 percent. The worksheet and tax tables appear on page 5.
The beneficiaries are the heirs. Right now in our joint living trust, income is taxed at our rate, as part of our tax return. We are the grantors and the trustees (my wife and I are.) Our kids are the beneficiaries (heirs) and get no income from the trust yet.